BANGOR RETAIL PARK · with current tenants including Matalan, DW Sports and B&M Bargains. Rents stand at circa £14.00 – £16.00 per sq ft. ANGOR RETAIL PAR CAERNARFON ROAD, BANGOR,

BANGOR RETAIL PARK CAERNARFON ROAD, BANGOR, LL57 4SUOUT OF TOWN RETAIL INVESTMENT OPPORTUNITY

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• Bangor is a city in North Wales which serves a primary catchment area of approximately 168,000 people.

• The scheme occupies a highly prominent position fronting Caernarfon Road, the city’s primary retail warehousing location.

• Comprises a 61,681 sq ft (GIA) purpose built retail park.

We are instructed to seek offers of £12,322,000, subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 6.50% (assuming purchaser’s costs at 5.80%), increasing to 6.78% in February 2017.

INVESTMENT SUMMARY

• Fully let to Next, Argos, Sports Direct and The Range, all 5A1 covenants.

• Freehold.

• Open A1 (non-food) planning consent.

• Attractive WAULT of approximately 11.3 years (9.3 years to break).

• Current income of £847,394 per annum. Rents between £11.50 and £16.50 per sq ft.

• The Range benefits from 5 yearly fixed rental uplifts equivalent to 2.0% per annum compounded.

• Asset management opportunities.

BANGOR RETAIL PARK CAERNARFON ROAD, BANGOR, LL57 4SU

OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY

EPC, VAT, PROPOSAL AND FURTHER INFORMATION

TENANTS’ FINANCIAL INFORMATION, ASSET MANAGEMENT AND PLANNING

TENANCY SCHEDULE, TENURE AND SITE

DESCRIPTIONRETAIL WAREHOUSE PROVISION AND SITUATION

LOCATION AND DEMOGRAPHICS

INVESTMENT SUMMARY

LOCATION

Bangor is a university city located in the county of Gwynedd. The city lies on the North Wales coast approximately 25 miles east of Holyhead, 22 miles west of Llandudno and 10 miles north east of Caernarfon.

The city benefits from excellent communication links, with the A55 North-Wales expressway linking to the M56 and M53 motorways to the east, and the A5 providing a link to Mid-Wales.

Bangor Railway Station is located on the North Wales Coast Line which provides direct access to Holyhead in 30 minutes and both Chester and

BANGOR PMA AVERAGE: SMALL TOWN

Total catchment population 2014 (000s) 168 84

Number of households in primary retail catchment (000s) 71 35

Shopping population im primary catchment (000s) 80 35

Total in-store comparison retail expenditure, 2014 (£m) £342 £195

Social structure – C2 (Skilled Manual Employment) % of adult population 26 23

Car Ownership 2011 (households with 1+ cars) 80% 78%

DEMOGRAPHICS

The total population within the Bangor primary catchment area is 168,000 people, which is significantly above the PROMIS Small Town average. Coupled with this, the estimated shopping population for the city is 80,000 people, which is above the PROMIS Small Town average.

Bangor has a particularly high proportion of young adults aged between 15-24 years. This is largely attributed to Bangor University, which has a student population of approximately 12,000 people. The city also has an above average proportion of adults of working age categorised within social group C2 (which includes those in skilled manual employment).

Reflecting the demographic profile and spending habits of the catchment population, total in-store comparison retail expenditure stood at £342 million in 2014, significantly above the PROMIS Small Town average of £195 million.

A selection of key catchment statistics are provided below:

Crewe in 1 hour 10 minutes and 1 hour 30 minutes, respectively. Services to London Euston are available with journey times of approximately 3 hours 30 minutes.

Bangor is the principal city on the Llyn Peninsula, and given its excellent transport links, serves as the main retail destination for a number of surrounding towns. This provides Bangor with a large catchment area and a captive retail audience, which is supplemented by a significant student population.

Llandudno RhylColwyn Bay

AbergeleConwy

BANGORCaernarfon

Porthmadog

Harlech

Holyhead

Betws-y-coed

BlaenauFfestiniogFfestiniog

LlanrwstLlanberis

Bala

Corwen

Denbigh

Abersoch

LlanbedrogPwllheli

Aberdaron

Nefyn

Dyffryn Ardudwy

Beaumaris

Amlwch

Benllech

Trearddur Bay

LlanfairfechanRhuddlan

Rhos-on-SeaDeganwy

A55A55

A5A5

A487A487

A494A494

A494A494

A470A470

A470A470

A5A5

A55A55A55A55

Note - Bangor is classified as a ‘Small Town’, the 200 retail PROMIS Centres are divided into broad Town Types on the basis of the volume of retail offer as measured by the PMA Retail Provision Indicator.

Primary catchment area

THE TOTAL POPULATION WITHIN THE BANGOR PRIMARY CATCHMENT AREA IS 168,000 PEOPLE

M58

M60

M66

M62

M56

M6M61

M65

M1

M50

M5

M5

M54

M6

M6

M56

M53

M40

M42

M42

M42

M4

M4

M49

M48

M5

M5

M32

M4

M4

M6

M6TOLL

M6TOLL

M4TOLL

St Asaph

DenbighMold

Ruthin

Llangollen

Ruabon

Ellesmere

Wem

Whitchurch

Nantwich

Buckley

Colwyn Bay

Caernarfon

PorthmadogCriccieth

Pwllheli

Amlwch

LlangefniMenaiBridge

Bethesda

Llanfyllin

Winsford

Bootle

Skelmersdale

Chorley

Stroud

Evesham

Stratfordupon Avon

TewkesburyBishop’s Cleeve

Hereford

Leek

Belper

Matlock

WarwickDroitwich

Oswestry

Lichfield

RugeleyAshby-de-la-Zouch

UttoxeterStone

Sandbach

Ashbourne

Northwich

Frodsham

Macclesfield

Sale

Barry

Bridgend

Caerphilly

Cwmbran

Pontypool

Carmarthen

Ammanford

Chepstow

Abergavenny

MerthyrTydfil

Pembroke

MilfordHaven

Llanelli

Neath

Salisbury

Chippenham

Melksham

Frome

Warminster

Trowbridge

Devizes

Cirencester

Clevedon

Burnham-on-Sea

Bridgwater

Minehead

Barnstaple

Ilfracombe

WREXHAM

Aberystwyth

Formby StandishOrmskirk

StocksbridgeKirkby

Flint

LlandudnoPrestatyn

Rhyl

AbergeleConwy

BANGOR

Holyhead

BrighouseBatley

DewsburyLeyland

St Asaph

DenbighMold

Ruthin

Llangollen

Ruabon

Ellesmere

Wem

Whitchurch

Nantwich

Buckley

Colwyn Bay

Caernarfon

PorthmadogCriccieth

Pwllheli

Amlwch

LlangefniMenaiBridge

Bethesda

Llanfyllin

Winsford

Bootle

Skelmersdale

Chorley

Cheltenham

Worcester

GLOUCESTER

Redditch

Stourport-on-Severn

Shrewsbury

Walsall

Dudley

SuttonColdfield

Cannock

Kidderminster

Newcastle-under-Lyme

Solihull

Nuneaton

StaffordBurton upon

Trent

Chester

StockportWidnes

Runcorn

Wallasey

Birkenhead

EllesmerePort

Warrington

Newport

SWANSEA

Bath

Swindon

Weston-super-Mare

Oldham

Bolton

Crosby

Wigan

Salford

St Helens

HuddersfieldRochdaleSouthport

CARDIFF

BRISTOL

STOKE-ON-TRENT

WOLVERHAMPTON

DERBY

LIVERPOOL

BIRMINGHAM

MANCHESTER

A6

A6

A6

A6

A6

A5

A5

A6A5

A5

A5

A5

A5

A4

A4

A4

A56

A59

A59

A59A58

A57

A56 A34

A49

A55A55A55

A61

A55

A53

A54A34A54

A55

A49

A54A51

A41

A41

A34

A38

A53A53

A41

A52

A51 A34

A52

A50

A53A50

A41 A50

A34

A51

A38

A34A51A41

A41A34

A38

A49

A38

A45A44A38

A34 A45A49

A46

A44 A49

A46A38A44

A44 A44 A46

A46

A46

A38

A49

A44

A44

A40A44

A49

A40A40 A49

A40

A40

A40

A40

A40A48

A40A40 A48

A48 A40A40

A48

A46

A38A37

A36

A38 A37

A36

A36A39

A37

A39

A646

A666

A565A629

A570 A637A629

A644

A565

A628A570

A629

A580

A560A562A561

A523

A623

A550

A537A537

A619

A515A494 A536

A534

A483

A483

A534A530

A534A470

A470

A534 A515A500A500

A523A523A494A487

A525 A515A494 A520

A495

A495

A470 A483A442

A494

A515A513

A518A444

A511

A449

A470A518 A460

A483A458 A458

A487

A458 A442A470

A446

A489

A452

A470 A483A454

A487A449

A489A458 A491

A458A483 A449A442

A470

A452A441A491A456 A435

A448A487 A470

A456 A448A449

A435A441

A483

A487

A422A429

A483A417

A438A470

A429

A429

A438

A417

A449

A483A438

A487

A465A417

A470 A449

A417A479

A470A465

A483

A477A465

A429

A436

A483 A417

A465

A449A477

A419

A470 A420A433 A429

A403

A350A346

A350A371 A368 A338

A361A350

A303A361

A361 A350A303

A361

A5209

A4177

A4112A4103

A4103

A4137

A4076

A4042

A4232

A49

A49

A53

A458

A5

A5

12

11



INVESTMENT SUMMARY






SITUATION The subject property is situated in Bangor’s primary retail warehouse location between the city centre and the A55 North-Wales expressway. The park occupies a prominent and accessible trading location on the eastern side of the A4057 Caernarfon Road, adjacent to Tesco Extra and opposite B&Q and Halfords.

The city centre is located approximately 1 mile to the north, with Junction 10 of the A55 is approximately 1/2 mile to the south.

RETAIL WAREHOUSE PROVISION PROMIS estimates the total retail warehouse provision in Bangor to be 399,000 sq ft, the majority of which is located on Caernarfon Road. There is a Tesco Extra foodstore, together with solus units occupied by B&Q, Halfords, Dunelm, Laura Ashley and Home Bargains. There are two other retail parks; Menai Retail Park and St David’s Retail Park.

A5

A545

A5

A5

A5

A4087

A4087

A4087

A4087

A5

A4087A487

A487

A487

Holyhead Rd

Holyhead Rd

Holyhea

d Rd

Holyhea

d Rd

Holyhea

d Rd

Holyhea

d Rd

Mona Rd

Mona Rd

Ffordd Bronwydd

Ffordd Bronwydd

Menai R

dM

enai Rd

Penrhos Rd

Penrhos Rd

Penrhos Rd

Penrhos Rd

N Wales ExpyN Wales Expy

N Wales ExpyN Wales Expy

N Wales Expy

N Wales Expy

Cyttir L

n

Cyttir L

n

Cyt

tir L

n

Cyt

tir L

n

Toro

nnen

Toro

nnen

Belmont Rd

Belmont Rd

Cilcoed

Cilcoed

High S

t

High S

t

Penrth

yn A

ve

Penrth

yn A

ve

Caelle

pa

Caelle

pa

LonpobtyLonpobty

Sackvi

lle Rd

Sackvi

lle Rd

Hendrewen Rd

Hendrewen Rd

Penr

thyn

Ave

Penr

thyn

Ave

Ffriddoe

dd Rd

Ffriddoe

dd Rd

Trem

Elid

irTr

em E

lidir

Penchwintan Rd

Penchwintan Rd

MinfforddMinffordd

Penrhos-GarneddPenrhos-Garnedd

Menai BridgeMenai Bridge

Parc MenaiParc Menai

TreborthTreborth

Capel-Y-GraigCapel-Y-Graig

CaerhunCaerhun

BangorBangor

MaesgeirchenMaesgeirchen

BANGORRETAIL PARK

MENAI RETAIL PARK (DTZ INVESTORS)

Menai Retail Park comprises 45,500 sq ft of accommodation, with an open A1 (non-food) planning consent. The units are let to Currys/PC World, TK Maxx, Carpetright and Pets at Home. Rents stand at circa £16.00 - £16.50 per sq ft.

ST DAVID’S RETAIL PARK (KAMES CAPITAL)

St David’s Retail Park comprises approximately 70,555 sq ft of accommodation, with a mix of open A1 (non-food) and D2 consent. The scheme is arranged as a three unit terrace with current tenants including Matalan, DW Sports and B&M Bargains. Rents stand at circa £14.00 – £16.00 per sq ft.



INVESTMENT SUMMARY




DESCRIPTIONLOCATION AND DEMOGRAPHICS

RETAIL WAREHOUSE PROVISION AND SITUATION

DESCRIPTION

The property comprises a terrace of three retail warehouse units and one standalone unit providing a GIA of approximately 61,681 sq ft.

The scheme was originally developed in 1988, whilst the Next and Argos units were built in 2004. The units are of steel portal frame construction, with brickwork and composite panel cladding to the elevations.

All tenants’ signage is prominently displayed and clearly visible from Caernarfon Road.

Internally, each unit has been fitted out to each tenant’s individual specification. The Next unit benefits from a full cover mezzanine floor, used for sales, staff accommodation and a Costa Coffee concession. The Argos unit has a storage mezzanine level of approximately 50% of the GIA.

The Range unit benefits from a covered garden centre, affixed to the south west elevation, which is accessible via the ground floor sales area within the property.

The car park is arranged to the front of all units and to the north eastern side of the

three unit terrace, with a total of 291 spaces, providing a good parking ratio of 1 : 212 sq ft.

There are two vehicular customer access and egress points, both from Caernarfon Road. The entrance nearest to The Range and Sports Direct is also used for servicing, providing direct access to a dedicated yard to the rear.

Car parking and access roads have a tarmacadam surface finish while the service areas are concrete-surfaced.



INVESTMENT SUMMARY




RETAIL WAREHOUSE PROVISION AND SITUATION


DESCRIPTION

CAERNARFON ROAD (A4087)CAERNARFON ROAD (A4087)

TENANCY SCHEDULE

The property is fully let on effectively full repairing and insuring leases with a WAULT of 11.3 years ( 9.3 years to break).

UNIT TENANT AREA GIA (SQ FT)

LEASE START (EXPIRY)

RENT REVIEW

RENT (PER ANNUM)

RENT (PER SQ FT) COMMENTS

1a & 1b Argos Ltd 10,000 25/10/2004 (24/10/2019) 25/10/2014 £165,000 £16.50

1c Next Group plc 11,994 27/09/2004 (27/09/2024) 27/07/2017 £183,000 £15.26 Tenant Break Option 27/02/2020 (1)

2 Sports Direct International plc 9,554 18/07/2014 (17/07/2024) 18/07/2019 £152,864 £16.00 Tenant Break Option 17/07/2019 (2)

3 CDS Superstores International Ltd t/a The Range 30,133 08/02/2012

(07/02/2032) 08/02/2017 £346,530 £11.50 The rent is subject to 5 yearly fixed uplifts (3)

Total 61,681 £847,394

(1) Break penalty of 12 months’ rent payable by Next Group plc.

(2) Break penalty of £133,756 payable by Sports Direct International plc.

(3) The lease to CDS Superstores International Ltd (t/a The Range) benefits from 5 yearly fixed rental uplifts equivalent to 2.0% per annum compounded as follows:

YEARS RENT (PER ANNUM)

RENT (PER SQ FT)

1 - 5 £346,530 £11.50

6 - 10 £382,597 £12.70

11 - 15 £422,417 £14.02

16 - 20 £466,383 £15.48

THE SITE EXTENDS TO APPROXIMATELY 7.63 ACRES (3.09 HECTARES)

TENURE

The property is held freehold within two separate titles, which are identified below.

SITE

The site within the red line boundary is broadly level and extends to approximately 4.34 acres (1.76 hectares). The site within the blue line boundary is on a steep incline and extends to 3.29 acres (1.33 hectares). The total property extends to 7.63 acres (3.09 hectares), providing a site coverage ratio of approximately 18.50%.



INVESTMENT SUMMARY






TENANTS’ FINANCIAL INFORMATION

100% of the rental income is secured against 5A1 D&B rated covenants, which represents minimum risk of business failure.

TENANT D&B RATING

ACCOUNTS YEAR END

TURNOVER £’000

PRE- TAX PROFIT £’000

NET WORTH £’000 % OF INCOME

Argos Ltd 5A1 01/03/201402/03/2013

£3,872,466£3,752,634

£43,992£84,662

£1,172,054£1,249,775 19%

Next Group plc 5A1 25/01/201426/01/2013

£197,700£212,300

£53,000£322,500

£1,296,600£1,747,900 22%

Sports Direct International plc 5A1 27/04/201428/04/2013

£2,705,958£2,185,580

£239,452£207,226

£565,983£404,511 18%

CDS Superstores International Ltd 5A1 26/01/201427/01/2013

£470,282£381,903

£45,238£34,834

£123,113£88,338 41%

ASSET MANAGEMENT

All tenants report very strong trading performance. Potential asset management opportunities are as follows:

1. Potential A3 units / scheme extension Opportunity to acquire a site to the rear of The Range unit and the Caprice Furniture and Topps Tiles sites for redevelopment.

2. Upsize Next There is the potential to upsize Next into Units 1a and 1b. We understand it trades strongly with little to no overlap with the nearest Next store in Llandudno.

3. Renew Argos We understand Argos trade well and are likely to want to renew their lease on expiry.

4. Sports Direct Soon after opening, and on the basis of strong trading levels, Sports Direct have indicated their interest to the landlord in negotiating the removal of their tenant break clause.

PLANNING

The scheme benefits from an open A1 (non-food) planning consent.



INVESTMENT SUMMARY






Designed and produced by THE GROUP www.completelygroup.com July 2015 | 13664.001

MISREPRESENTATION NOTICE. Wilkinson Williams LLP give notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement of representation or fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in the particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property, this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by an intending purchaser. 7. Descriptions of the property are inevitably subjective and the descriptions contained herein are given in good faith as an opinion and not by way of statement of fact. Plans are published for convenience of identification only and although believed to be correct, their accuracy is not guaranteed and they do not form part of any contract. July 2015.

FURTHER INFORMATION

MILES MARTEN

T: 020 7317 3777M: 07770 748290E: [email protected] JACK LLOYD

T: 020 7317 3796M: 07747 883231E: [email protected]

Wilkinson Williams Heathcoat House 20 Savile Row London, W1S 3PR

www.wilkinsonwilliams.co.uk

PROPOSAL

We are instructed to seek offers of £12,322,000, subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 6.50% (assuming purchaser’s costs at 5.80%), increasing to 6.78% in February 2017.

EPC

A copy of the EPC’s are available on request.

VAT

The property is registered for VAT and it is proposed that the sale will be treated as a “Transfer of Going Concern”.



INVESTMENT SUMMARY






Documents

BANGOR RETAIL PARK · with current tenants including Matalan, DW Sports and B&M Bargains. Rents stand at circa £14.00 – £16.00 per sq ft. ANGOR RETAIL PAR CAERNARFON ROAD, BANGOR,